Construction PMI at 18 month high
CONSTRUCTION activity contracted in August at its slowest pace in eighteen months, a leading survey showed yesterday, raising hopes that the economy will grow in the third quarter.
The CIPS/Markit construction purchasing managers’ index (PMI) recorded 47.7 in August, compared to 47.0 in July. However, it remained well below the 50 mark, which signals growth.
David Noble, chief executive at the Chartered Institute of Purchasing & Supply, said: “Though August saw a reduction in the rate of deterioration in the construction sector, it is still the sick man of the UK economy.”
IHSGlobal Insight’s Howard Archer said: “The sector is being helped by the government bringing forward some infrastructure spending as part of efforts to boost the economy,”